DB schemes look to bonds

survey reveals pension plans continue to move out of equities for better liability matching

Pension schemes will continue to switch away from equities even though the stock market is rising, a survey from the Association of Consulting Actuaries (ACA) has found. Over seven out of 10 defined benefit (DB) schemes in the UK have increased their bonds holdings in order to match liabilities more accurately and this trend looks set to continue apace, according to the ACA. It surveyed 390 firms with more than 2.8 million members and pension scheme assets of more than £131bn. The survey revealed that some 43% of schemes are already more than matched in terms of liabilities and a furthe...